Comerica Management Releases 2011 Full Year Outlook

Jefferies & Company has published a research report on Comerica CMA after the company posted GAAP earnings above consensus, based mostly on reserve release, according to Jefferies. In the report, Jefferies writes "Management released its full-year outlook for 2011. On first blush, pre-provision guidance looks light while credit looks better. Key drivers include: 1) $48B in average earning assets (vs. our model at $48.9B), 2) net interest margin in line with 2010 levels (3.24% vs. our model at 3.32%), 3) full year charge-offs of $350m-$400mm (vs. our model at $396mm), 4) provision between $150mm-$200mm (vs. our model at $360mm), 5) a single-digit decrease in fee income (vs. our model of a single-digit increase), and 6) a low single-digit increase in expenses (in line with our model)." Jefferies maintains its Hold rating and $42 price target. Comerica closed Friday at $42.25.